My theory is that the cold war will erupt into an actual war between the empire and republic at the outer rim
It more or less will. It's basically like an interpretation of what would've happened if WWIII was initiated during the Cold War.
Anyhow, more or less, there will be another devastating war between the Republic and Sith Empire. The Republic and Sith Empire have already built doomsday weapons ("missiles that darken suns, shields that envelop planets")(ie: Hammer Station, Desolator, more or less more doomsday weapons)
Hopefully, 1) Revan will return to aid the Republic war effort against the Sith Empire and 2) the class stories expand with Chapter Four, Five and Six.